BBM Gov’t exceeds its Debt target w/ still 6 Months to go while Debt-to-GDP Ratio climbs to 66%, the highest in 21 Years
The latest Economic Data from the Philippine Government itself shows that its Total Debts as of June of this Year of 2026 was already at ₱19.07 trillion, which is already above the ₱19.06 trillion limit that they themselves targeted for this Year, despite the Fact that there is still another six more Months left to go in the Year.
This in Turn has pushed the Philippines' Debt-to-Gross Domestic Product (GDP) Ratio to 66% also as of June 2026, which is the highest Level recorded since 2004 or 21 Years ago during the time of former President Gloria Macapagal Arroyo (GMA).
By comparison, the Debt Ratio reached a record-low of 39.6% in 2019 during the time of former President Rodrigo Duterte. The Debt-to-GDP Ratio is calculated by dividing the Philippines’ GDP with its current total Debt.
One of the main Reasons for such a high Debt Ratio now is due to the very poor GDP Growth suffered by the Philippines in the first six Months of this Year which was only at 2.8% in first Quarter or from January to March, followed by only 2.3% in the second Quarter from April to June 2026.
This resulted in lower Earnings to fund the current Budget which forced the Government to seek other Ways to get the Funds such as borrowing more from Local and Foreign Lenders.
SOURCE: Debt Burden reaches 66% of GDP, highest Level since Arroyo Era {Archived Link}
